Rule of thumb: hard drives are about 7% less than what they're labeled as. Thus 80GB = 74.5, 100 = 93, 120 = 111, 160 = 149, etc....
The reason, as everybody's been saying, is that hard drive makers advertise their products' capacity in decimal - for example, the generic disclaimer on the box: "<maker> rates a gigabyte as 1,000,000,000 bytes."
But computers count in binary (powers of two). Thus, 1GB = 1,073,741,824 bytes (2^30).
So, 120,000,000,000 bytes divided by 1,073,741,824 bytes per gigabyte = 111.76GB
YMMV - this number may be more or less than what you end up with for things like boot record(s), file and directory and partition tables, general housekeeping stuff.